The Test for Overidentifying Restrictions Is Valid If _____

question 29

Multiple Choice

The test for overidentifying restrictions is valid if _____.

• A)the regression model exhibits heteroskedasticity
• B)the regression model exhibits homoskedasticity
• C)the number of instrumental variables are less than the number of endogenous explanatory variables
• D)the number of instrumental variables are just enough for obtaining consistent estimators

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Definitions:

Hydraulic System

A technology in which fluid is used to move energy from one location to another, often used in machinery to perform work.

Double-Wall Steel

A construction method using two layers of steel to provide added strength, insulation, or protection against leaks or external damage.

Copper Clad

A material or board that is coated with a layer of copper, often used in the manufacturing of printed circuit boards (PCBs).

Brake Fluid

A hydraulic fluid used in brake systems to transfer force into pressure.